Description of the programme

Pension Wise is a national pensions guidance service, backed by the Department for Work and Pensions. It provides free, impartial guidance on the options available to people wishing to access their pension money. It is open to anyone aged 50 and over with a defined contribution pension that has not been accessed. The programme is delivered through a partnership. Citizens Advice offers face-to-face appointments, while The Pensions Advisory Service (TPAS) provide telephone appointments. Information is also available on the Pension Wise website. The report does not specify how many customers the service reached.

The study

The research evaluates customer experiences of the Pension Wise service in 2017/18, comparing different delivery methods. The evaluation was based on telephone and online surveys conducted with customers and eligible non-users, including people that accessed information about Pension Wise online. The initial survey consulted 1,976 people who booked appointments. Of these people, 856 customers completed a follow-up outcomes survey. 936 people who did not have a Pension Wise appointment but were eligible also completed a survey.

The surveys included questions about:

• Where customers heard about the service and what prompted them to use it.
• Experience of booking and completing appointments.
• Satisfaction with the service.
• Impacts of the service on customers’ knowledge and understanding about pension options.
• Impacts on customer actions to progress their pension options.

This research utilises a set of comparable surveys carried out in 2016/17. However customer experience may have been affected by service developments introduced during 2017/18. This included an increase in the number of appointments delivered, an emphasis on improving service efficiency, and digitising aspects of the appointment booking and delivery process.

Participant data was weighted to be representative of people who booked Pension Wise appointments between September and November 2017. Website users and non-user responses were also weighted to match the profile of those who booked appointments.

Key findings

• Customers attending appointments were more often male (65%) and aged 55 to 64 (67%). The majority of customers were still working (59%).

• Among customers who completed appointments, 92% were satisfied or very satisfied with their experience (94% in 2016/17).
• Over 90% were satisfied with various aspects of their appointment, including waiting time, convenience of the date and time, appointment length, clarity of discussions and tailoring to their personal circumstances.
• Almost a quarter of customers (23%) had recommended Pension Wise to others and a further 72% were very likely to do so.

One month after their appointment:

• Nearly all customers (97%) had a better understanding of their options.
• The overwhelming majority (89%) felt well informed about their pension options, compared to 54% of non-users.

Three months after their appointment:

• Nine in ten customers (92%) felt confident that they would be able to avoid scams, compared to 78% of non-users.
• Over half the customers (58%) had spoken with their pension provider. 89% of these customers felt well prepared for these discussions (compared to 70% of non-users).

In the three months following their appointment:

• Seven in ten (72%) had calculated the income needed in retirement (compared to 34% of non-users).
• Seven in ten (71%) had researched their preferred pension options (compared to 35% of non-users).
• Two thirds (63%) had spoken to their pension provider about their options (compared to 18% of non-users).
• Customers were more likely than non-users to have:
• Reviewed the tax implications of their preferred pension option (61% vs. 26%).
  • Researched how long they would require a retirement income for (57% of vs. 28%).
  • Considered pensions charges (40% vs. 16%).
  • Requested quotes from a number of pension providers (19% vs. 5%).

• Overall, satisfaction and advocacy levels remained consistent with the positive 2016/17 results.
• However, higher customer volumes and operational changes led to slight reductions in the level of satisfaction experienced, due to longer waiting times for appointments and some increased travel requirements.

Points to consider

• The evaluation does not necessarily prove a causal link between Pension Wise appointments and outcomes for customers. It does however demonstrate that customer knowledge of pension options is higher than that of non-users, and that they are satisfied with the service.

• Given its positive results, the intervention could potentially be scaled up. However, caution should be exercised as the non-user sample is not representative of the wider population of 50-70 year-olds with un-accessed defined contribution pensions in the UK.
• The intervention could also be tested with demographic groups that have engaged less with pension advice to date.